The UK government may levy a windfall tax on energy firms if they fail to reinvest their “enormous profits” in domestic energy supplies, a minister has suggested.
The main opposition Labour Party has been calling on the government to bring in a windfall tax on oil and gas producer profits, which would add another 10 percent to the corporation tax on the companies’ profit on top of the 40 percent they have been paying.
Several government ministers have openly voiced opposition to the idea, but Chancellor Rishi Sunak has not ruled it out.
Simon Clarke, chief secretary to the Treasury, warned energy companies that the tax could be levied if they do not invest more in developing more domestic energy sources….